This document appears to be a student's project on performance appraisal at a company. It includes an acknowledgements section thanking various professors and individuals for their support and guidance. It then provides a preface introducing the project topic and outline. The main body of the document discusses performance appraisal, including its objectives and uses. It provides definitions and explanations of key concepts. Tables of contents and a declaration from the project guide are also included.
This document appears to be a student's project on performance appraisal at a company. It includes an acknowledgements section thanking various professors and individuals for their support and guidance. It then provides a preface introducing the project topic and outline. The main body of the document discusses performance appraisal, including its objectives and uses. It provides definitions and explanations of key concepts. Tables of contents and a declaration from the project guide are also included.
This document appears to be a student's project on performance appraisal at a company. It includes an acknowledgements section thanking various professors and individuals for their support and guidance. It then provides a preface introducing the project topic and outline. The main body of the document discusses performance appraisal, including its objectives and uses. It provides definitions and explanations of key concepts. Tables of contents and a declaration from the project guide are also included.
In partial fulfillment of the requirements for the Degree of
Bachelor of Business Administration
Submitted to Submitted by Ms. Shweta Sharma Muneeb-ul-hafiz Add. Dean Roll No:-1107132 (Planning & Admin) BBA:-6TH H.O.D (Mgt.)
UNIVERSAL INSTITUTION OF MANAGEMENT AND TECHNOLOGY AFFILATED TO - PUNJAB TECHINICAL UNIVERSITY JALANDHAR
ACKNOWLEDGEMET Research is an endless ocean and one requires be guiding and supporting by several individual in order to derive out a handful of pearls from its depth. It is difficult to acknowledge so precious debt as that of learning, as it is the only debt that is difficult to repay, except through gratitude. It is my proud privilege and pleasure to express deep sense of gratitude to MS. Charanjeet (Project Guide) to placing complete faith and confidence in my ability to carry out this study. He took interest in spite of his numerous commitment and busy schedule to help me to complete this project. My project would not have seen the light of the day without his masterly guidance and overwhelming help. I am also gratefully indebted to Ms.Charanjeet (faculty member of Universal Business School) for providing me inspiration, encouragement, help, valuable guidance, constructive criticism and constant interest to complete my project report.The successful completion of this project would not have been possible without the guidance of above people. Lastly but not the least, I would take the opportunity to thank my parents, friends and all those visible and invisible hands that contributed to make this project a success. Muneeb-ul-hafiz Roll No:-1107132 BBA 6 th
PREFACE Managing human resources in todays dynamic environment is becoming more and more complex as well as important. Recognition of people as a valuable resource in the organization has led to increases trends in employee maintenance, job security, etc My research project deals with Performance Appraisal. In this report, I have studied &evaluated the performance appraisal process as it is carried out in the company. The first section of my report deals with a detailed company profile. It includes the companys history: its activities and operations, organizational structure, etc. this section attempts to give detailed information about the company and the nature of its functioning. The second section deals with performance appraisal. In this section, I have given a brief conceptual explanation to performance appraisal. It contains the definition, process and significance of performance appraisal. In the third section of my report, I have conducted a research study to evaluate the process of performance appraisal this section also contains my findings, conclusions, suggestions and feedback. The forth and final section of this report consists of extra information that I related to the main contents of the report. These annexure include some graphs and diagrams relating to the company, graphs relating to the research study and important documents upon which the project is based.
DECLARATION
This is to certify that Muneeb-ul-hafiz student of BBA bearing roll no.1107132 has completed the project titled PERFORMANCE APPRAISAL SYSTEM under my guidance.
This is original piece of work. The findings in this report are based on the data collected by him. He has not copied the data from any previous report. I further certify that this project has not been submitted to any other Company/ University for any other purpose.
Muneeb-ul-hafiz
TABLE OF CONTENTS
Acknowledgement Preface Declaration List of tables List of Graphs
CHAPTER No. CHAPTER NAME PAGE NO:
Chapter-1 Introduction 1-12 Chapter-2 Review of literature 13-16 Chapter-3 Research Methodology 17-18 1.1 Research design 19-21 1.2 Objectives of the study 22 1.3 Scope of the study 23 1.4 Data collection 24 1.5 Limitations 25
INTRODUCTION Performance appraisal is a systematic evaluation of present potential capabilities of personnel and employees by their superiors, superiors superior or a professional from outside. It is a process of estimating or judging the value, excellent qualities or status of a person or thing. It is a process of collecting, analysing, and evaluating data relative to job behaviour and results of individuals. The appraisal system is organised on the principle of goals and management by objectives. Management decisions on performance utilise several integrated inputs: goals and plans, job evaluation, performance evaluation, and individual history. It connotes a two-dimensional concept - at one end of the continuum lies the goals set by the authority, and at the other end, the performance achieved by the individual or any given group. Performance appraisal can be either formal or informal. Usage of former systems schedule regular sessions in which to discuss an employees performance. Informal appraisals are unplanned, often just chance statements made in passing about an employees performance. Most organisations use a formal appraisal system. Some organisations use more than one appraisal system for different types of employees or for different appraisal purposes. Organisations need to measure employee performance to determine whether acceptable standards of performance are being maintained. The six primary criteria on which the value of performance may be assessed are: quality, quantity, timelineness, cost effectiveness, need for supervision, and interpersonal impact. If appraisals indicate that employees are not performing at acceptable levels, steps can be taken to simplify jobs, train, and motivate workers, or dismiss them, depending upon the reasons for poor performance. The results of appraisal are normally used to: (1) estimate the overall effectiveness of employees in performing their jobs, (2) identify strengths and weaknesses in job knowledge and skills, (3)determine whether a subordinates responsibilities can be expanded, (4) identify future training and development needs, (5) review progress toward goals and objectives, (6) determine readiness for promotion, and (7) motivate and guide growth and development.
OBJECTIVES OF PERFORMANCE APPRAISAL
Performance appraisal plans are designed to meet the needs of the organisation and the individual. It is increasingly viewed as central to good human resource management. This is highlighted in Cummings classification of performance appraisal objectives. According to Cummings and Schwab (1973), the objectives of performance appraisal schemes can be categorised as either evaluative or developmental. The evaluative purpose have a historical dimension and are concerned primarily with looking back at how employees have actually performed over a given time period, compared with required standards of performance. The developmental performance appraisal is concerned, for example, with the identification of employees training and development needs, and the setting of new targets. The broad objectives of performance appraisal are: 1. To help the employee to overcome his weaknesses and improve his strengths so as to enable him to achieve the desired _performance. 2. To generate adequate feedback and guidance from the immediate superior to an employee working under him. 3. To contribute to the growth and development of an employee through helping him in realistic goal setting. 4. To provide inputs to system of rewards (comprising salary increments, transfers, promotions, demotions or _terminations) and salary administration. 5. To help in creating a desirable culture and tradition in the organisation. 6. To help the organisation to identify employees for the purpose of motivating, training and developing them. 7. To generate significant, relevant, free, and valid _information about employees. In short, the performance appraisal of an organisation provides systematic judgments to backup wage and salary administration; suggests needed changes in ones behaviour, attitudes, skills, or job knowledge; and uses it as a base for coaching and counseling the individual by his superior. Appraising employee performance is, thus, useful for compensation, placement, and training and development purposes.
USES OF PERFORMANCE APPRAISAL The appraisal systems do not operate in isolation; they generate data that can contribute to other HRM systems - for example to succession planning and manpower planning.Some of the common uses of appraisals include: Determining appropriate salary increases and bonuses for workers based on performance measure. Determining promotions or transfers depending on the demonstration of employee strengths and weaknesses. Determining training needs and evaluation techniques by identifying areas of weaknesses. Promoting effective communication within organisations through the interchange of dialogue between supervisors and subordinates. Motivating employees by showing them where they stand, and establishing a data bank on appraisal for rendering assistance in personnel decisions. Organisations use performance appraisals for three purposes: administrative, employee development, and programme assessment. Programme appraisal commonly serve an administrative purpose by providing employers with a rationale for making many personnel decisions, such as decisions relating to pay increases, promotions, demotions, terminations and transfers. Valid performance appraisal data are essential to demonstrate that decisions are based on job related performance criteria. An employees performance is often evaluated relative to other employees for administrative purposes, but may be assessed in relation to an absolute standard of performance. Performance appraisal for employee development purposes provides feedback on an employees performance. The intent of such appraisals is to guide and motivate employees to improve their performance and potential for advancement in the organisation. Appraisal data can also be used for employee development purposes in helping to identify specific training needs of individuals. Programme assessment requires the collection and storage of performance appraisal data for a number of uses. The records can show how effective recruiting, selection, and placement have been in supplying a qualified workforce. Performance measures can be used to validate selection procedures and can also be used asbefore and
after measures to determine the success of training and development programmes. In brief, the various uses of performance appraisal can be classified into two broad categories. One category concerns the obtaining of evaluation data on employees for decision-making for various personnel actions such as pay increases, promotions, transfers, discharges, and for selection test validation. The other main use is for employee development including performance improvement training, coaching, and counseling.
PLANNING THE APPRAISAL A meaningful performance appraisal is a two-way process that benefits both the employee and the manager. For employees, appraisal is the time to find out how the manager thinks they are performing in the job. For a manager, a formal appraisal interview is a good time to find out how employees think they are performing on the job. The planning appraisal strategy has to be done: Before the appraisal 1. Establish key task areas and performance goals. 2. Set performance goals for each key task area. 3. Get the facts. 4. Schedule each appraisal interview well in advance. During the appraisal 1 Encourage two-way communication. 2. Discuss and agree on performance goals for the future. 3. Think about how you can help the employee to achieve more at work. 4. Record notes of the interview. 5. End the interview on an upbeat note.
After the appraisal 1. Prepare a formal record of the interview. 2. Monitor performance. APPROACHES TO PERFORMANCE APPRAISAL George Odiorne has identified four basic approaches to performance appraisal. Personality-based systems: In such systems the appraisal form consists of a list of personality traits that presumably are significant in the jobs of the individuals being appraised. Such traits as initiative, drive, intelligence, ingenuity, creativity, loyalty and trustworthiness appear on most such lists. Generalised descriptive systems: Similar to personality-based systems, they differ in the type of descriptive term used. Often they include qualities or actions of presumably good managers: organises, plans, controls, motivates others, delegates, communicates, makes things happen, and so on. Such a system, like the personality-based system, might be useful if meticulous care were taken to define the meaning of each term in respect to actual results. Behavioural descriptive systems: Such systems feature detailed job analysis and job descriptions, including specific statements of the actual behaviour required from successful employees. Results-centred systems: These appraisal systems (sometime called work-centred or job-centred systems) are directly job related. They require that manager and subordinate sit down at the start of each work evaluation period and determine the work to be done in all areas of responsibility and functions, and the specific standards of performance to be used in each area.When introducing performance appraisal a job description in the form of a questionnaire has to be preferred. A typical questionnaire addressed to an individual would cover the following points: What is your job title? To whom are you responsible? Who is responsible to you? What is the main purpose of your job? To achieve that purpose what are your main areas of responsibility? What is the size of your job in such terms of output or sales targets, number of items processed, number of people managed, number of customers? What targets or standards of performance have been assigned for your job? Are there any other ways in which it would be possible to measure the effectiveness with which you carry out your job? Is there any other information you can provide about your job?
COMPONENTS OF PERFORMANCE APPRAISAL
The components that should be used in a performance appraisal system flow directly from the specific objectives of appraisal. The following components are being used in a number of Indian organizations.
1. Key Performance Areas (KPAs) / Key Result Areas (KRAs) 2. Tasks/targets/objectives; attributes/qualities/traits 3. Self appraisal 4. Performance analysis 5. Performance ratings 6. Performance review, discussion or counseling 7. Identification of training / development needs 8. Ratings / assessment by appraiser 9. Assessment / review by reviewing authority 10. Potential appraisal.
TYPES OF PERFORMANCE APPRAISAL There are two types of performance appraisal systems which are normally used in organisations: close ended appraisal system, open ended appraisal system. In the close ended appraisal system, commonly used in government organisations and public enterprises, a confidential report is submitted on the performance of the employee. Only where an adverse assessment is made against an individual, the concerned individual is informed about the same. The main shortcoming of this system is that an individual is not informed about his/her inherent strengths and weaknesses and, therefore, is not given an opportunity to respond to the assessment made on him/her. The employees are, therefore, in a constant dilemma as to how their performance is viewed by the management. In the open ended appraisal system, unlike in the close ended system, the performance of the individual is discussed with him, and he is ranked in a five or ten point rating scale. The company uses this tool primarily for rewarding a good performer or for other considerations like promotions. The main weakness of this system is that all the employees are ranked in a particular scale, and whereas the good performers are rewarded, there is no concerted effort to motivate the average performers in performing better. Another weakness of the grading system is that the appraisal may turn out to be more subjective in nature due to insufficient data maintained on the individual. This system also leads to unnecessary comparisons made on different individuals performing similar jobs. Performance appraisal can be a closed affair, where the appraises do not get any chance to know or see how they have been evaluated; or it can be completely open, where the appraises have the opportunity of discussing with their superiors during the evaluation exercise.
REVIEW OF LITERATURE Bendick, M., Egan, M. & Lofhjelm, S. (2001). HR performance appraisal system, Vol. 24 No. 2, pp. 10-25. This articles focus on the US workplace. Organizations can benefit from performance appraisal offering diversity training to employees. That is, training employees to respect others and not to act in a discriminatory manner towards fellow employees. McGregor, L. (2000). Career Development International. Vol. 5 No. 4/5, pp. 244-249. This article presents two models of mentoring. The traditional view of mentoring is facilitated mentoring where the more experienced person (mentor) acts as a role model for the less experienced person (mentee). Another approach is also offered guided learning. A more experienced co-worker uses guided learning to teach a less experienced worker new skills. Taylor, W. (2005). The Age, My Career Section, p. 11, 26/11/2005. This paper outlines the experiences of two executive women in developing an internal mentoring program. The experiences demonstrate that the mentoring relationship not only benefits the mentees but also the mentor While the increased demand for executive coaching in the marketplace has opened up, the increasing number of coaches of every type, training, and perspective has also grown (Brotman et al., 1998; Joo, 2005; Kampa-Kokesh, & Anderson, 2001; Wasylyshyn, 2003). It is surprising that with the increased use of executive coaching and the rising number of coaches, there has not been a professional association formed to develop and monitor the standards, requirements, and competency validation solely for executive coaches (Brotman et al., 1998; ICF, 2006; Wasylyshyn, 2003). This need has brought reactions from executives, coaches, and clients who suggest standardized methods. Executives have recognized the significance of executive coaching in their professional performance, both personally and organizationally (Effron et al., 2005; Joo, 2005; Kampa- Kokesh, & Anderson, 2001; Turner, 2006; Wasylyshyn, 2003). During the beginning years of executive coaching, it was seen as an executive crutch to assist non-performers. Today, executive coaching is looked upon as a necessary tool and in some cases reserved only for senior executives (Joo, 2005; Kampa-Kokesh, & Anderson, 2001; Stevens, 2005; Turner, 2006; Wasylyshyn, 2003). One reason for the about face attitude could be the value executive coaching brings as a "time-out" break, from the unyielding demands of the corporate world, for inner- thought, assessment, positive criticism, and a co-development of strategies (Bacon & Spear,
2003; Brotman et al., 1998; Joo, 2005; Kampa-Kokesh & Anderson, 2001; Kilburg, 1996a; Orenstein, 2002; Stevens, 2005; Turner, 2006; Wasylyshyn, 2003). One of the premier uses of executive coaching is to deliver "just-in-time" strategies for increasing one's personal performance and effectiveness by transforming weaknesses into strengths (Bacon & Spear, 2003; Kampa-Kokesh, & Anderson, 2001; Kilburg, 1996a; Orenstein, 2002; Wasylyshyn, 2003). Due to this increase in personal ROI, corporate America is enamored with executive coaching and the benefits it has brought in recent years (Bacon & Spear, 2003). With many corporate incomes decreasing over the past few years, corporations have reevaluated their training and development practices, to include the use of external sources (Joo, 2005; Kampa-Kokesh, & Anderson, 2001; Turner, 2006; Wasylyshyn, 2003). As a result, executive coaching focuses on ensuring alignment with corporate strategy (Bluckert, 2005b; Brotman et al., 1998; Edwards, 2003; Levinson, 1996; Joo, 2005; Orenstein, 2006; Peterson, 1996; Saporito, 1996; Turner, 2006). In this changing corporate setting, executive coaching must be used in a laser-focused manner, rather than a liberally used improvised solution (Orenstein, 2006). Those corporations who have identified the need and usefulness of executive coaching have created an inner coaching environment to facilitate coaching through internal coaches (Turner, 2006). It is in the new corporate coaching culture of companies employing their own coaches (internal) where the chemistry of the coaching relationship takes a back seat to replicable measures in the coaching protocol (Joo, 2005; Kampa-Kokesh & Anderson, 2001; Stevens, 2005; Turner, 2006; Wasylyshyn, 2003). The internal coach, unfortunately, finds him or herself in a dilemma of possibly losing one of his most prized outcomes, which is, assisting clients to become masters of change management (Wasylyshyn, 2003). Another downturn of this "commoditization" of executive coaching is to put a limit on the use of coaching, and to what extent, documenting the benchmarks, stages, and action steps. Doing so, realistically, diminishes the coaching process to a cookie cutter approach including a preset number of sessions and strategies rather than a co- developed strategic plan developed over the course of an ongoing relationship. (Joo, 2005; Kampa-Kokesh & Anderson, 2001; Turner, 2006; Wasylyshyn, 2003).
RESEARCH METHODOLOGY
Research means a search for knowledge. Sometimes, it may refer to scientific and systematic search pertinent information on a specific topic. Intact researcher is an art of scientific investigation. Redman and Moray define researcher as a systematic efforts to gain new knowledge. Some consider researcher is a movement from the known to the unknown. It is actually a voyage of discovery. According to Clifford woody, researcher compromise, define and redefining problem, formulating hypothesis or suggested solution; collecting ,organizing and evaluating data; making deduction and reaching conclusion; and at last carefully testing the conclusion to determine whether they fit the formulating hypothesis. Researcher is thus an original contribution to the existing stock of knowledge making for its advancement. It is the pursuit of truth with the help of study, observation, comparison and experiment. In short, the study of knowledge through objective and systematic method consisting of enunciating the problem, formulating the hypothesis collecting the facts or data, analyzing the facts and researching certain conclusion either in the form of solution towards the concerned problem or in certain generalist for some theoretical formulations.
RESEARCH DESIGN:
Research Design refers to "framework or plan for a study that guides the collection and analysis of data". A typical research design of a company basically tries to resolve the following issues: a) Determining Data Collection Design b) Determining Data Methods c) Determining Data Sources d) Determining Primary Data Collection Methods e) Developing Questionnaires f) Determining Sampling Plan (1) Explorative Research Design: Explorative studies are undertaken with a view to know more about the problem. These studies help in a proper definition of the problem, and development of specific hypothesis is to be tested later by more conclusive research designs. Its basic purpose is to identify factors underlying a problem and to determine which one of them need to be further researched by using rigorous conclusive research designs. (2) Conclusive Research Design: Conclusive Research Studies are more formal in nature and are conducted with a view to eliciting more precise information for purpose of making marketing decisions. These studies can be either: a) Descriptive or b) Experimental Thus, it was mix of both the tools of Research Design that is, Explorative as well as Conclusive.
OBJECTIVES OF THE STUDY
1. To develop my understanding of the subject. Performance Appraisal System implemented in various Organizations varies according to the need and suitability. Through my research, I havetried to study the kind of Appraisal used in the Organization and the various pros and cons of this type of system.
2. To conduct a study on social behavior. Social behavior is a very unpredictable aspect of human life but social research is an attempt to acquire knowledge and to use the same for social development.
3. To enhance the welfare of employees. The Appraisal system is conceived by the Management but mostly does not take into consideration the opinion of the employees. This can lead to adverse problems in the Organization. Therefore by this study I have attempted to put forth the opinion of the employee with respect to the acceptability of the Performance Appraisal System. 4. To exercise social control and predict changes in behavior. The ultimate object of my research is to make it possible to predict the behavior of individuals by studying the factors that govern and guide them.
OBJECTIVES OF THE STUDY: To study performance appraisal system To understand and evaluate performance appraisal mechanism in operation. To evaluate the effectiveness and satisfaction level of the employees towards performance appraisal system in HAMUL
SCOPE OF THE STUDY To help each employee understand more about their role and become clear about their functions; To be instrumental in helping employees to better understand their strengths and weaknesses with respect to their role and functions in the organization;
To help in identifying the developmental needs of employees, given their role and function;
To i ncr eas e mut ual i t y bet we en empl oyees and t hei r s uper vi s or s s o t hat ever y employee feels happy to work with their supervisor and thereby contributes their maximum to the organization;
To act as a mechanism for increasing communication between employees and their s uper vi s or s . I n t hi s wa y, ea c h empl oyee get s t o know t he expect at i ons of t hei r superior, and each superior also gets to know the difficulties of their subordinates and can try to solve them. Together, they can thus better accomplish their tasks;
To provide an opportunity to each employee for self -reflection and individual goal- setting, so that individually planned and monitored development takes place; To help employees internalize the culture, norms and values of the organization, thus developing an identity and commitment throughout the organization;
To help prepare employees for higher responsibilities in the future by continuously reinforcing the development of the behavior and qualities required for higher -level positions in the organization;
To be instrumental in creating a positive and healthy climate in the organization that drives employees to give their best while enjoying doing so; and
To as s i s t i n a var i et y of per s onnel deci s i ons by per i odi cal l y gener at i ng dat a regarding each employee.
DATA COLLECTION:
Data Sources: (i) Secondary Data through Internet (ii) Primary Data through Questionnaire (iii) Contact Method (iv) Personal Interaction
DATA PRESENTATION AND ANALYSIS: 1. Bar graphs 2. Pie Diagrams
LIMITATIONS OF THE STUDY
A few limitations and constraints came in way of conducting the present study, under which the researcher had to work are as follows: Although all attempts were made to make this an objective study, biases on the part of respondents might have resulted in some subjectivity.
Though, no effort was spared to make the study most accurate and useful, the sample Size selected for the same may not be the true representative of the Company, resulting in biased results.
This being the maiden experience of the researcher of conducting study such as this, the possibility of better results, using deeper statistical techniques in analyzing and interpreting data may not be ruled out.
DATA ANALYSIS AND INTERPRETATION
1. Expectations from Appraisal System : Respondents were asked to rank the various options according to their preference. (Rank 1 being most preferred and rank 6 being least preferred). Then scoring was given on the basis of ranks. 1 mark was allotted to rank 1, 2 marks for rank 2 and so on.
Particular Score Overall Rank Salary Administration and Benefits 87 1 Determination of promotion or transfer 109 2 Assistance in goal 228 3 Guideline for training plan 254 4 An insight into your strengths and weakness 312 5 Decision to layoff 354 6
From the above table it can be seen that employees expect Salary Administration and Benefits to be the main reason for conducting a Performance Appraisal. Decision to layoff is of least importance as per the appraisee.
2. Awareness about Responsibilities :
From the graph it can be seen that majority of employees are aware about their responsibilities, which implies that the appraisers have efficiently communicated to the appraisees all the parameters that will be taken into account during appraisal.
Yes 86% No 14% Awareness about Responsibilities
3. Satisfaction Level among appraise regarding Appraisal System :
From graph it can be seen that majority of the respondents are satisfied with the appraisal system. Only a meager 30% were dissatisfied with the Performance Appraisal programs. 4. Awareness about performance ratings :
This clearly shows that majority of the employees are not aware about the performance ratings that are taken into account while conducting a performance appraisal. 2% 28% 42% 23% 5% Satisfaction Level Fully Dissatisfied Partially Dissatisfied Satisfied Partially satisfied Fully satisfied Yes 34% No 66% Awarness about Performance Rating
5. Alowing Self ratings :
From graph it can be seen that majority of respondents want self rating to be a method of conducting the appraisals . 6. Chance to rate your own performance
From the graph we can see that majority of the employees are not given a chance to rate their own performance in the organization. Yes 92% No 8% Self Rating Should be allowed Yes 23% No 77% Rate your own performance
7. Timing of Appraisals
This shows that most of the organisations conduct their Performance Appraisal programs annually. A very small percentage of the organisations conduct Performance Appraisals on a half yearly basis. The share of the quarterly and monthly appraisals are extremely minimal. 8. Credibility of Appraiser
This shows that according to the employees/appraisees the credibility of the appraiser is extremely important and it has an effect on the overall Performance appraisal program. 2% 3% 11% 84% Timing of Appraisal Monthly Quaterly Half Yearly Annual 37% 63% Credibility of Appraiser Yes No
9. Complaint channel for employees
This shows that there is no proper complaint channel existing in the organisations for the employees who are dissatisfied with the performance appraisal system. 10. Standards communicated to employees
From this it can be seen that there is a clear majority among the employees who say that the standards on the basis of which the performance appraisal is carried out is not communicated to the employees before hand. 27% 73% Complaint Channel for employees Yes No 36% 64% Standards Communicated to Employees Yes No
11. Performance Appraisal
Almost all the Performance Appraisals are carried our by the Immediate Supervisor in these organisations. In very few organisations, Rating committees carry out the performance appraisals. None of the organisations use Peer Appraisals, Appraisals by subordinates and Self rating as a method of Performance Appraisal.
12. Clear understanding of Appraisers job
This shows that the performance Appraisal programs are successful in giving a clear understanding of the appraisees job to both appraiser and appraisee.
From the figure we can derive that the objective for conducting the Appraisal system is clear only to half of the employees. The remaining half are not clear about the objective for which the Performance Appraisal is carried out. 14. Good communication between top management and business goals
This shows that the appraisal systems do not provide a good communication flow of the top-management plans and business goals to the staff below.
50% 50% Objective of Appraisal System Yes No 22% 78% Good communication between Top management and Business goal Yes No
15. Comments and suggestions to be considered
Almost all the employees expect that their comments and suggestions should be taken into consideration while conducting the Performance Appraisal. 16. Post Appraisal interview
As per the response from the employees we can see that there is no interview conducted after the appraisal program for majority of the employees.
98% 2% Comments and suggestion to be considered Yes No 30% 70% Post Appraisal Interview Yes No
Appraiser Survey 1. Purpose of Appraisal
Respondents were asked to rank the various options according to their preference. (Rank 1 being most preferred and rank 6 being least preferred). Then scoring was done on basis of these ranks. 1 mark was allotted to rank 1, 2 marks for rank 2 and so on. Then the total score for each purpose was calculated and overall ranking was given. Particular Score Overall Rank Determination of promotion or transfer 24 1 Salary Administration and Benefits 27 2 Decision to layoff 42 3 Guideline for training plan 69 4 Assistance in goal 72 5 An insight into your strengths and weakness 81 6
27 24 42 72 69 81 Salary Administration and Benefits Determination of promotion or transfer Decision on layoff Assistance in goal Guideline for training Plan An insight into your strengths and weakness Purpose of Appraisal System Score
From table it can be seen that appraiser considers Determination of promotion or transfer & Salary administration and Benefits as two important factors for conducting an Appraisal. 2. Appraisal System
In this question appraiser was asked to rate how helpful the appraisal system is, from the graph it can be seen that majority of appraisers have rated 5,4 & 3 which implies that Performance Appraisal system is very helpful in Planning their work. Also most of the appraisers are satisfied with the appraisal system.
3. Support from subordinate
0% 0% 27% 60% 13% Appraisal System 1 2 3 4 5 100% 0% Support from Subordinate Yes No
This question was asked to find out how helpful appraisal system is in communicating the support that apprasier needs from appraisee. From results it is seen that the performance appraisal system is very helpful in communicating the support and help needed by the appraiser from the appraisee.
4. Type of Appraisal System
From results its clear that majority of companies prefer to use 360 degree feedback system for Performance Appraisal. As 360 degree feedback gives feedback of appraisee from everyone interacting with him, it is more reliable and hence most preferred.
0% 14% 13% 73% 0% Type of Appraisal System Assessment centre MBO BARS 360 degree feedback
5. Performance Appraisal criteria
From results we can see that Qualitative Process is considered as the most important criteria for which the Performance appraisal programs are carried out, which shows that companies consider Qualitiy of product & service and Customer satisfaction as most important factors.
6. Timing of Appraisals
From graphs we can see that most of companies conduct appraisals on annual basis. Some companies conduct quaterly also.
20% 60% 20% Performance Appraisal criteria Quantitative outcome criteria Qualitative process criteria Quantitative process criteria 87% 13% 0% 0% 0% Timing of Appraisal Annual Quaterly Half Yearly Monthly Anytime
7. Effect of poor Appraisal System
It can be seen from results that most of the employees get De-motivated because of a poorly conducted appraisal. To some extent employees dont coordinate with their team members. Thus resulting in reduction of output.
8. Communication between top management and staff
All appraisers totally agree that performance appraisal helps in communicating the top management plans and business goals to staff at lower level.
73% 0% 27% Effect of Poor Appraisal System De-motivation Retention Ineffective teamwork 100% 0% Good Communication between Top Management and Staff Yes No
9. Insight to Appraisers strength and weakness
It is evident from the results that performance appraisal system doesnt help the appraiser in understanding strength and weakness of apraisee.
10. Appraisers comment and suggestion
From the results it can be seen that appraisees comments and suggestion are not taken into consideration before Performance Appraisal. Performance Appraisal system is designed by appraiser without consulting appraisee. 33% 67% Insight into Appraisee's Strength and weakness Yes No 13% 87% Appraisee's comment & suggestion Yes No
11. Performance Appraisal
It is evident from the results that performance appraisal is conducted by the Immediate Supervisor in all the companies. 12. Understanding of Apprasiees Job
From this it is clearly seen that according to appraiser there is a clear and joint understanding of the appraisees job.
From results it is evident that Performance appraisal standards are very well communicated to Appraisee before the Appraisal is carried out.
14. Self rating in Performance Appraisal
From results it can be clearly seen that the Appraisee is not given a chance to rate his own performance.
87% 13% Standards for Performance Appraisal Yes No 0% 100% Self Rating in Performance Appraisal Yes No
15. Action after Performance Appraisal
This shows that most of the companies act upon the results of their Performance Appraisal program.
100% 0% Action after Performance Appraisal Yes No
Conclusions and Suggestions Performance appraisal should not be perceived just as a regular activity but its importance should be recognized and communicated down the line to all the employees. There should be a review of job analysis, job design and work environment based on the performance appraisal. It should bring more clarity to the goal and vision of the organisation. It should provide more empowerment to the employees. New methods of appraisal should be adopted so that both appraiser and the appraisee take interest in the appraisal process. The employees who have excellent performance should be used as a mentor for other employees which would motivate others to perform better. Employees should be given feedback regarding their appraisal. This will help them to improve on their weak areas. Financial and non-financial incentives should be linked to the annual appraisal system so that employees would be motivated to perform better. New mechanisms should be evolved to educe the time factor involved in the procedure of appraisal. Introducing online-appraisal can do this. The frequency of training program for the appraiser should be increased and these sessions should be made interactive. The awareness sessions for the employees/appraisees should be made more interactive and the views and opinion of the appraisees regarding appraisal should be given due consideration. Assistance should be sought from specialists for framing a proper appraisal system that suits the organisation climate. Constant monitoring of the appraisal system should be done through discussions, suggestions, interactions. Combining the different methods of appraisal can minimize the element of biasness in an appraisal. Like the Rating method combined with assessment center method would give an evidence of poor/unfavorable or outstanding behaviour of the appraisee, if any. Use of modern appraisal techniques like 360 o appraisal, assessment centers which are more effective.
More transparency should be brought about in the appraisal system. The appraisal system should cover all employees in the organization both white collar and blue-collar jobs. Recognizing the good performers i.e., appraises who have accomplished the targets for the year can help in getting more commitment from the employees. Information regarding the performance of the employees should be kept in proper manner. Some of the performance appraisals should be conducted by the top management so that they can understand the employees and their needs, behavior better and to find out the loopholes. Performance appraisal should be effectively link to the performance management system of the organization. .still follow the traditional methods of appraisal that should be transformed into the modern one.
B I B L I O G R A P H Y
W e b s i t e s :-
w w w . s a i l i n d i a . c o . i n w w w . w i k i p e d i a . o r g www.performance-appraisal.com/intro.htm www.telecollege.dcccd.edu/contents/evaluate.htm
B o o k s :-
i . P e r s o n n e l H u m a n R e s o u r c e M g m t B y D a v i d A D e c e n z o
i i . H u m a n R e s o u r c e M g m t B y G a r y D e s s l e r
Questions for Appraiser
1. Purpose of Performance appraisal : (Rank the options from 1 to 6; 1 being main purpose & 6 being last purpose) Detail Rank Salary Administration and Benefits
Retain performing employees
Determination of promotion or transfer
Decision on layoff
Assistance in goal
Guideline for training Plan
2. Is the Performance Appraisal helping you to plan your work well? 1 2 3 4 5 (1 = Least helpful; 5 = Most helpful)
3. Does the system provide you a chance to communicate the support you need from your subordinate to perform the job well. a. Yes b. No
4. Which appraisal system is being employed in the company? a. Assessment centre b. MBO c. BARS d. 360 degree feedback e. Balance scorecard
5. Performance Appraisal criteria a. Quantitative outcome criteria (Sales volume, Sales price, Productivity, Goal accomplishment rate) b. Qualitative process criteria (Quality of product or service, Customer satisfaction) c. Quantitative process criteria (Efficiency, Cost/expenses, Attendance) d. Qualitative process criteria (Judgment, Work attitude, Leadership, Conduct /Trait)
6. Timing of Appraisals a. Monthly b. Quarterly c. Half Yearly d. Annual e. Anytime 7. What do you think is the effect of a poor appraisal system a. De-motivation b. Retention c. Ineffective teamwork 8. Does the appraisal system provide a good communication between the top-management plans and business goals to staff below? a. Yes b. No 9. Does it give insight to appraisee regarding his strength or weakness? a. Yes b. No 10. Are employees comments and suggestions taken into consideration before the appraisal? a. Yes b. No
11. Who conducts the performance appraisal a. Immediate supervisor
b. Peer appraisal c. Rating committees d. Self-rating e. Appraisal by subordinates
12. Is the performance Appraisal successful in giving a clear understanding of the appraisers job to both appraiser and appraise? a. Yes b. No
13. Are the standards on the basis of which the performance appraisal is carried out communicated to the employees before hand? a. Yes b. No
14. Do you give an opportunity to the appraisee to rate his own performance? a. Yes b. No
15. Do you act upon the results of your performance appraisal? a. Yes b. No
16. If yes, then mention the remedial measures taken?